Feeding the farmed fish

Aquafeed market: Global trends and forecasts

The aquafeed market has grown exponentially in the last decade and this growth is expected to continue. Here we look at a few global trends and the forecasts for the coming years.

Factors such as increasing consumption of seafood and growth in the aquaculture industry are propelling the market for the aquafeed industry, globally. The expanding middle-class population, especially in developing nations, and their increasing income are expected to maintain the growth of the aquaculture industry in the coming years. New technologies are being introduced to increase the production of tilapia and catfish. With the development of new technologies, efforts are also being made to improve the feed of these fish in order to attain high productivity. Research and development activities carried out across all regions, especially in Europe, to develop low-cost production techniques and alternative raw materials are expected to add pace to the growth rate of the aquafeed market.

Value of aquafeed market

The aquafeed market was valued at $62,427.8 million in 2013, is estimated to be $69,998.1 million in 2014, and is projected to reach $123,990.3 million by 2019, at a Compound Annual Growth Rate (CAGR) of 12.3% from 2014 to 2019. In terms of consumption, the market is estimated to be 53,824.8 thousand metric tonnes in 2014, with a projected CAGR of 10.7% from 2014 to 2019. Higher incomes in the developing world, apperception of aquaculture products as being premium, and dietary changes have fuelled the boom in aquafeed production. The availability of fish meal and other protein sources has also ignited the growth of the relatively young industry in the animal protein sector, accounting for the bulk of the global increase in demand for aquafeed in Asia. This is driven largely by China and the huge potential for the fresh water fish segment. India, another rapidly growing aquaculture market, is also witnessing a significant rise in aquafeed demand.

Amino acids have largest share

Fish meal accounted for the largest market size, both by volume and value, with 30,331.6 thousand metric tons and $36,522.4 million in 2013, and it is estimated to be 33,689.0 thousand metric tonnes and $41,087.7 million in 2014, at projected CAGRs of 11.0% and 12.5% from 2014 to 2019, respectively. The opening of ‘new markets’ in the Western countries, where aquatic products are not featured in the traditional diet, and the receptiveness of ‘new species’ such as tilapia in Europe and North America are also the key factors fuelling the growth of the fish meal market. On the basis of additives, the aquafeed market has been segmented into antibiotics, vitamins, antioxidants, amino acids, feed enzymes, feed acidifiers, and others (pellet binders, colorants, ancillary supplements, emulsifiers, hormones, attractants, probiotics, and preservatives). Amino acids, by value, accounted for the largest share (21%) of the total aquafeed market in 2013 while the antibiotics market, by volume, accounted for the largest share (21.5%) of the total aquafeed market for the same year. However, the antibiotics segment of aquafeed market, by value, is poised to grow at the highest CAGR of 12.6% from 2014 to 2019 while the vitamins segment, by volume, is poised to grow at a healthy CAGR of 11.4% from 2014 to 2019. This is mainly attributed to the growing awareness about the benefits of aquafeed amongst the consumers in developing countries.

Fish meal accounted for the largest market size, both by volume and value, with 30,331.6 thousand metric tons and $36,522.4 million in 2013, and it is estimated to be 33,689.0 thousand metric tonnes and $41,087.7 million in 2014, at projected CAGRs of 11.0% and 12.5% from 2014 to 2019, respectively.

Most aquafeed in Asia-Pacific

The Asia-Pacific region (comprising China, Japan, Indonesia, and Thailand) accounted for the largest share (80%) of the total aquafeed market in 2013. Factors such as increasing knowledge about aquaculture, rising consumption of seafood and improved standard of living are the key factors that are supporting the growth of the aquafeed industry, particularly in this region. Compared to the developing regions, Europe, particularly Norway, is expected to grow at a healthy rate in the next five years, with a CAGR of 12.3% from 2014 to 2019. The rise in demand for seafood globally has led to the increase in exports from Norway. The demand of aquafeed is expected to increase owing to the increasing production capacity and the quality of fish in the aquaculture industry.

This information is based on the recently released report Aquafeed market – Global trends and forecasts to 2019 (www.marketsandmarkets.com).